Texas A&M boosters paying $30M NIL

[Bayside44]

Cruel? If he made $1M over a 4 year career that’s a pretty good hand. If they choose not to save their earnings that’s on them.

Yeah, but, the kid likely isn't getting the money.

 

[Niastri]

Cruel? If he made $1M over a 4 year career that’s a pretty good hand. If they choose not to save their earnings that’s on them.

You're coming from this as someone who understands money, it sounds like.

You have no idea how ignorant people are. As a financial planner, I sit down with people who have Masters degrees and six figure incomes that literally need me to put together a monthly budget so they can figure out how much they can afford to invest.

A kid who comes from generational poverty who only had this one shot because of their football talent is like a baby in the woods compared to the people who will extract that money from them. They literally know nothing and have nobody with fiduciary responsibilities to help them as it stands.

At least if I'm the first guy the player sits with when the money comes in he'll have a basic education on how to handle it.

 

[cusefan88]

Wasn’t the idea behind name, image and likeness complaints pertain to Jersey, tshirt, merchandise, radio tv commercials, video games etc where their name and image were being used without compensation? How did it turn into a public yet secretive accumulation of slush funds comprised of millions of $ to be dispensed at the discretion of the slush fund creators to even lure recruits who have never even played in a game? This isn’t even attached to merchandise etc using their name, image nor likeness - it’s all become irrelevant now.

This goes back to the NCAA, schools, etc not having a plan and not working with all parties to have common sense regulation. It became one big grey area and now you can't put this back in the bottle.

 

[rocklloyd]

Did we decide if they have a tax liability from the NiL $? How many people will not save appropriately for the tax bill the following year?

 

[djcon57]

They literally know nothing and have nobody with fiduciary responsibilities to help them as it stands.

What's the difference in getting 1 million dollars from NIL in college or going pro and getting 1 million? Are those 2 years taking English 101 going to put them over the edge as a financial expert?

I truly don't understand the hand wringing over this other than it affects our school's football team negatively

 

[rrlbees]

What's the difference in getting 1 million dollars from NIL in college or going pro and getting 1 million? Are those 2 years taking English 101 going to put them over the edge as a financial expert?

I truly don't understand the hand wringing over this other than it affects our school's football team negatively

I’d think most if not all players getting drafted in the nfl or nba have agents. I would think agents would also set them up with the rest of their team which would include a finance person. These kids coming out of HS or the portal or on a team currently I think are far less likely to retain a finance person. Some have agents for NIL deals but many don’t.

 

[sufandu]

Wasn’t the idea behind name, image and likeness complaints pertain to Jersey, tshirt, merchandise, radio tv commercials, video games etc where their name and image were being used without compensation? How did it turn into a public yet secretive accumulation of slush funds comprised of millions of $ to be dispensed at the discretion of the slush fund creators to even lure recruits who have never even played in a game? This isn’t even attached to merchandise etc using their name, image nor likeness - it’s all become irrelevant now.

Yes, the intention was exactly what you describe. But what has transpired is what some of us on here said would transpire. Anyone paying attention knew the boosters at the factories would immediately find a way to use it. I didn't think it would look exactly like this. I thought it would be more like a rich booster buying 1,000 licensed jerseys or paying $10,000 for an autograph or way overpaying to endorse a local business and then making sure every big time recruit knew about it. But I'm not the least bit surprised that a bunch of rich businessmen that are used ro usurping the rules have figured out better ways to buy recruits.

 

[sufandu]

This goes back to the NCAA, schools, etc not having a plan and not working with all parties to have common sense regulation. It became one big grey area and now you can't put this back in the bottle.

The NCAA has no power to regulate NIL. They nor the schools ever were going to. Once they said an athlete can remain eligible while making money off of NIL they lost all authority. If I have the right to make money off my likeness, who has the right to tell me how much I can make. If someone decides to pay me $1 million for my autograph, nobody can stop it. This was the way it was always going to go.

 

[jgeorge322]

Did we decide if they have a tax liability from the NiL $? How many people will not save appropriately for the tax bill the following year?

Thats income. It is taxable.

 

[rocklloyd]

Thats income. It is taxable.

The guys getting merchandise say like a 7-series bmw might get a big surprise the following year.

 

[bnoro]

If I have the right to make money off my likeness, who has the right to tell me how much I can make.

That's correct, and it's good to see that the athletes are finally getting the money they deserve, rather than the schools.

 

[cusefan88]

That's correct, and it's good to see that the athletes are finally getting the money they deserve, rather than the schools.

For the record this is the side I'm on too.

 

[javadoc]

The NCAA has no power to regulate NIL. They nor the schools ever were going to. Once they said an athlete can remain eligible while making money off of NIL they lost all authority. If I have the right to make money off my likeness, who has the right to tell me how much I can make. If someone decides to pay me $1 million for my autograph, nobody can stop it. This was the way it was always going to go.

I think they do, but not comprehensively. If I recall, the NIL has to be structured in such a way that it preserves amateur status, which the NCAA does have the ability to define and enforce. So the payments can't be direct remuneration for athletic performance; there has to be a business tie-in, such as endorsements or merchandise. It can't simply be "booster X hands over $75,000 and that's the end of it". So while the NCAA can't limit the amount, they can attach strings to the process of getting the money.

 

[sufandu]

I think they do, but not comprehensively. If I recall, the NIL has to be structured in such a way that it preserves amateur status, which the NCAA does have the ability to define and enforce. So the payments can't be direct remuneration for athletic performance; there has to be a business tie-in, such as endorsements or merchandise. It can't simply be "booster X hands over $75,000 and that's the end of it". So while the NCAA can't limit the amount, they can attach strings to the process of getting the money.

Those strings are really easy to follow. I'm betting all of these boosters are well aware them. There really is nothing the NCAA can do. If they attempt to close loopholes they become villians attempting to steal the athletes money again.

 

[kirbivore]

Did we decide if they have a tax liability from the NiL $? How many people will not save appropriately for the tax bill the following year?

IRS formulating response to the new NIL environment

 

[kirbivore]

I think they do, but not comprehensively. If I recall, the NIL has to be structured in such a way that it preserves amateur status, which the NCAA does have the ability to define and enforce. So the payments can't be direct remuneration for athletic performance; there has to be a business tie-in, such as endorsements or merchandise. It can't simply be "booster X hands over $75,000 and that's the end of it". So while the NCAA can't limit the amount, they can attach strings to the process of getting the money.

So Weitsman could pay the top recruits whatever he wanted and as long as he put the kids' face on a scrap metal truck he's following the rules

 

[Toga]

How about the fact that a kid is being paid 400k and for whatever reason the coach doesnt want to play the kid. How is that going to fly

Getting into direct pay for performance should be fun to watch in terms of team dynamics.

 

[javadoc]

So Weitsman could pay the top recruits whatever he wanted and as long as he put the kids' face on a scrap metal truck he's following the rules

It's up to the NCAA to determine how strongly they want to enforce this. If there is any virtue to this scheme, it's that the money is moving above the table here, so any parties not doing what they should will be more evident.

 

[Niastri]

What's the difference in getting 1 million dollars from NIL in college or going pro and getting 1 million? Are those 2 years taking English 101 going to put them over the edge as a financial expert?

I truly don't understand the hand wringing over this other than it affects our school's football team negatively

I think the NFL and other pro leagues do put their guys in contact with financial advisors.

As to your other point, there is no greater increase in personal responsibility than occurs during college.

You go from an 18 year old kid who's parents take care of everything to a 22 year old adult who is ready to take on life. Every year there is another step on that path, but you can clearly see the difference between the freshman students and the older ones at the start of the year. Maturity happens quickly when you suddenly live all on your own.

 

[0.2 YNdeeR]

I think they do, but not comprehensively. If I recall, the NIL has to be structured in such a way that it preserves amateur status, which the NCAA does have the ability to define and enforce. So the payments can't be direct remuneration for athletic performance; there has to be a business tie-in, such as endorsements or merchandise. It can't simply be "booster X hands over $75,000 and that's the end of it". So while the NCAA can't limit the amount, they can attach strings to the process of getting the money.

I think that's basically right. Obviously the situation is a total mess, with congress in gridlock, the NCAA struggling to update Bylaw 12 (to meet anti-trust restrictions) and states continuing to push popular - but confusing and contradictory - NIL laws.

The NCAA requires students to follow school rules and policies on NIL. It varies by state and school, but SU, as one example, has an intellectual rights sharing agreement with athletes - so they can use SU's logos. All schools, according to Inside Higher Ed, are bound by three important restrictions (at least one seemingly violated by the Texas A&M booster scheme):

Under the [NCAA's NIL] policy, athletes cannot accept NIL deals unless they play, compensation cannot be contingent upon their enrollment at a particular school or their athletic achievement and athletes cannot accept payment from their institution in exchange for use of their name, image or likeness.

While some NCAA athletes cash in on NIL, others lose out.

 

[Capt. Tuttle]

If a kid who comes from nothing makes $1 million off NIL at 18 years old and is broke, injured and out of football at 22, that is beyond cruel.

He could take it as a lesson learned and be thankful that he didn't have to join the military, get paid barely a livable wage, and return home at 21 with permanent disfigurement, a prosthetic, PTSD, and have to battle depression and suicidal ideation every day.
By all means, let's worry about the kid that blew a million bucks.

 

[djcon57]

I think the NFL and other pro leagues do put their guys in contact with financial advisors.

As to your other point, there is no greater increase in personal responsibility than occurs during college.

You go from an 18 year old kid who's parents take care of everything to a 22 year old adult who is ready to take on life. Every year there is another step on that path, but you can clearly see the difference between the freshman students and the older ones at the start of the year. Maturity happens quickly when you suddenly live all on your own.

That's fair for an average student. But the vast majority of guys drafted aren't 22 and still have everything done for them including school work in some cases.

I do get your point though and your concerns,

 

[Louie and Bouie]

I think that's basically right. Obviously the situation is a total mess, with congress in gridlock, the NCAA struggling to update Bylaw 12 (to meet anti-trust restrictions) and states continuing to push popular - but confusing and contradictory - NIL laws.

The NCAA requires students to follow school rules and policies on NIL. It varies by state and school, but SU, as one example, has an intellectual rights sharing agreement with athletes - so they can use SU's logos. But according to Inside Higher Ed, there are three important restrictions (at least one seemingly violated by the Texas A&M booster scheme):

Under the [NCAA's NIL] policy, athletes cannot accept NIL deals unless they play, compensation cannot be contingent upon their enrollment at a particular school or their athletic achievement and athletes cannot accept payment from their institution in exchange for use of their name, image or likeness.

While some NCAA athletes cash in on NIL, others lose out.

How does A&M booster collective violate the above restrictions?

 

[0.2 YNdeeR]

How does A&M booster collective violate the above restrictions?

. . . compensation cannot be contingent upon their enrollment at a particular school . . .

Open question whether this violates texas state law. But having 50 different sets of rules ... will make compliance a nightmare.

 

[Louie and Bouie]

Basically, there is no way to restrict any payout unless its tied to performance or conditioned upon commitment to a specific schools.

The booster collectives have already figured out how to comply with all restrictions based upon one year renewable contracts once kids arrive on campus and linked to service work or marketing/advertising. It can't be performance based in its contractual language but there are ways around that too.

This isn't difficult for top businesses and their teams of lawyers to figure out. I also don't think the NCAA will want to pursue investigation unless its blatant violation.

The door is wide open and cannot be shut now unless people just want straight pay to play which is an option too.